How a Living Trust Can Help You Avoid Probate in Pennsylvania

One of the major benefits of a living trust is that it may allow many of your assets to pass directly to your beneficiaries without going through probate. Instead of the probate court overseeing the transfer, your trustee distributes trust assets according to the instructions without the delays that come with probate court.

Probate is not always difficult, but it can be both time-consuming and costly. Many people use a living trust because they want to make life easier for their families after they pass away. Our Bethlehem living trust attorneys can help you make one the centerpiece of your comprehensive estate plan.

What Is a Living Trust?

A living trust is a legal document that holds ownership of your assets during your lifetime and directs how those assets pass to your beneficiaries after your death. In general, you can serve as your own trustee while you are alive, giving you extensive control over how that property is used.

Many people are concerned that creating a trust will mean giving up control of their finances and potentially finding themselves struggling to get by. The good news is that is not how a typical revocable living trust works. Because you remain the trustee, you continue buying, selling, investing, and using your assets normally. You even have the opportunity to modify the trust or terminate it entirely during your lifetime.

How Does a Living Trust Avoid Probate?

A living trust avoids probate because the trust—not you individually—owns the assets placed into it. When you pass away, your successor trustee already has legal authority to manage and distribute those trust assets according to the terms of the trust. Usually, the trust document gives them authority to transfer those assets to your heirs as soon as possible.

Another major benefit of a living trust is the potential for avoiding delays. Not only does it allow you to skip the costs of probate, but administering a trust is generally less time-consuming.

Keep in mind that only assets actually owned by the trust generally avoid probate. If you leave significant assets outside the trust, your heirs will still need to file a probate case to deal with them.

What Assets Can You Place in a Living Trust?

Many valuable assets can be transferred into a living trust, making it an effective tool for avoiding probate. However, not every asset belongs in a trust, and each type of property should be reviewed carefully as part of your estate plan.

Real estate is one of the most common assets people transfer into a living trust. Whether you own your primary residence, vacation property, rental property, or vacant land, placing real estate into the trust can simplify its transfer after your death.

Financial accounts may also be retitled into the trust, depending on the institution’s requirements. Investment accounts, brokerage accounts, certificates of deposit, and many bank accounts can often become trust assets.

Business owners frequently use living trusts as part of succession planning. Membership interests in LLCs, closely held corporate shares, or partnership interests may be transferred into a trust if doing so aligns with the governing business documents.

Finally, a trust can hold a wide range of personal property, including things like:

• Jewelry
• Art
• Collectibles
• Heirlooms
• Wine

The right attorney can ensure your trust covers all of your important assets within your estate.

Is a Living Trust Better Than a Will?

A living trust is not necessarily better than a will because each document serves a different purpose. In fact, most comprehensive estate plans rely on both documents to be successful.

A will directs how probate assets should be distributed after your death. It also allows you to nominate a guardian for minor children. However, a will generally must go through probate before your executor can distribute covered assets. A living trust works differently: it allows certain trust assets to pass outside probate, which often speeds up the administration process.

Many people also use a “pour-over will” with their living trust. This type of will directs that assets accidentally left outside the trust should ultimately transfer into the trust through probate if necessary, making it one of the most vital parts of any estate plan.

Frequently Asked Questions

Do all estates have to go through probate in Pennsylvania?

No, as assets like payable-on-death accounts and property held in joint ownership transfer outside of the probate court system entirely.

Can I change my living trust after I create it?

You can change your revocable living trust at any time, but irrevocable trusts can only be altered by court order.

Do I still need a will if I have a living trust?

Yes. Most people should still have a will, particularly a pour-over will, to address assets that remain outside the trust and other important estate planning issues.

How Our Firm Can Help

Creating a living trust involves much more than completing a form. Your trust must reflect your goals, comply with Pennsylvania law, and be properly funded to accomplish what you intend. Our firm helps clients build estate plans that work in the real world. We review your assets, discuss your family circumstances, explain your available options in plain language, and prepare documents tailored to your objectives. Whether you want to avoid probate, protect your family’s privacy, or create a long-term plan for future generations, our team is here to help.

Reach Out to Leeson & Co. Today

Don’t put your future at risk by waiting to create an estate plan until it’s too late. At Leeson & Co., we can help you develop trusts and wills that work together to meet your needs and protect what matters. Contact us as soon as possible for a private consultation.